Efficiency ratio
How straight a price's path has been: the net move divided by the total distance traveled.
Formula
Efficiency = |Last − First| ÷ Σ |Daily change|
How to read it
1 is a straight line — a clean trend; near 0 is a price going back and forth to end where it started.
How to use it
Separates a clean trend from noise; KAMA adapts its speed to it.
In Kereon
Investing · price record. Over the last 63 or 252 sessions of closing prices, as the label says.
Also called: efficiency, efficiency ratio, er.